U.S. Navy Contract
 for Ultrasonic Acoustic Heterodyning Technology

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Announced April 12, 2000

This announcement from American Technology Corp., the patent holder for acoustic heterodyning technology, clearly shows that the use of ultrasound for transmission of voice over significant distances is a reality. When voice-FM is used in place of normal, hearable audio, you have one method of targeting a person at a distance, even in a crowd, with hypnotic commands which cannot be heard by the ears but which are heard and understood by the mind.

This development in covert hypnosis technology underscores the urgent need for debate and controls on all such anti-personnel weapons-capable technologies, instead of the stone silence all governments have maintained to this date. 

Date sent: Wed, 12 Apr 2000 07:37:24 -0700

To: investor@atcsd.com

From: Wendy Ravenel 

Subject: ATCO Press Release 4/12/00 (1 of 2)

FOR IMMEDIATE RELEASE   

AMERICAN TECHNOLOGY CORPORATION ANNOUNCES LICENSE WITH THOMSON MULTIMEDIA

NAVSEA Contract

Mr. Brosnan then announced that the PMS 400 division of NAVSEA has awarded a $218,000 research and development contract to the company and General Dynamics Bath Iron Works to test ATC's patented HyperSonic(TM) Sound technology (HSS(TM)) on board a U.S. Navy Aegis Destroyer underconstruction at Bath Iron Works. Among its many applications,  HSS technology enables ship-to-ship communications without breaking radio silence.  HSS can also target selected individuals in a group or in a noisy environment and deliver audio to that person.  Bath Iron Works, a General Dynamics Company, supplies technology and shipbuilding services to the U.S. Navy. General Dynamics employs 43,000 people worldwide and has annualized sales of approximately $10 billion. Elwood G. Norris, Founder of the company, demonstrated voice and music content with exceptional clarity and bandwidth through the latest, proprietary HSS emitter and modulator technologies to shareholders at the meeting in Escondido, California. 

Patents

Mr. Brosnan announced that as of the date of the meeting, the company had been granted nine (9) patents on HSS and has another nine (9) patents pending. Additionally, the company has eight (8) patents pending on its SFT technology and two (2) patents pending on its MFW(TM) subwoofer technology.

NAVSEA AWARDS $218,000 RESEARCH AND DEVELOPMENT CONTRACT TO BATH IRON WORKS AND AMERICAN TECHNOLOGY CORPORATION FOR TEST APPLICATION OF HYPERSONIC(TM) SOUND TECHNOLOGY

(SAN DIEGO, CALIFORNIA - April 12, 2000) - The PMS 400 division of NAVSEA has awarded a $218,000 research and development contract to General Dynamics Bath Iron Works and American Technology Corporation (NASDAQ: ATCO) to test HyperSonic Sound Technology on board a U.S. Navy Aegis Destroyer under construction at Bath Iron Works.

HyperSonic Sound Technology, under development in the laboratories of American Technology Corporation in San Diego, California, is a revolutionary sound reproduction system. The most important quality of HSS(TM) is the ability to direct or focus sound into a tight beam, similar to the beam of light from a flashlight. No other audio reproduction device available today provides this powerful feature. Not since the development of the "cone" loudspeaker more than 75 years ago has any technology provided such significant departure from conventional speakers and such a remarkable approach to the reproduction of sound.

About Bath Iron Works

Bath Iron Works of Bath, Maine, a leader in surface combatant design and construction, employs 7,600 people.  It is a subsidiary of General Dynamics (NYSE:GD), headquartered in Falls Church, Virginia.  General Dynamics has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation.  The company employs 43,000 people worldwide and has annualized sales of approximately $10 billion.  More information about General Dynamics can be found on the worldwide web at www.generaldynamics.com.

CONTACTS:

ATC:  Robert Putnam or Wendy Ravenel, (858) 679-3168, robert@atcsd.com or wendy@atcsd.com

Bath Iron Works:  Susan Pierter, (207) 442-1149, susan.pierter@biw.com

Wendy Ravenel                      

Shareholder Relations/Public Relations

American Technology Corp.

13114 Evening Creek Drive South

San Diego, CA 92128

(858) 679-2114 PHONE

(858) 679-0545 FAX

Note new area code (858) as of June 1999

http://www.atcsd.com

investor@atcsd.com

WR

Wendy Ravenel

No bio.

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